Construction in Ireland – Key Trends and Opportunities to 2019

The Report:

Ireland’s construction industry suffered a dramatic decline during the financial crisis. In real terms, the Irish construction industry’s output contracted by 51.5% between 2008 and 2014. Weak business confidence and consumer demand, high unemployment, a large budget deficit, depressed economic conditions in the eurozone and public spending cuts affected demand for construction during the review period (2010-2014). The industry’s value is expected to pick up over the forecast period (2015-2019). Investment in social housing, commercial projects, infrastructure and renewable energy, as well as improvements in consumer and investor confidence and in regional and global economic conditions will support the growth. In real terms, the industry’s output value recorded a compound annual growth rate (CAGR) of -2.53% during the review period, but will bounce back with a CAGR of 5.77% over the forecast period.

Scope

This report provides a comprehensive analysis of the construction industry in Ireland. It provides: o Historical (2010-2014) and forecast (2015-2019) valuations of the construction industry in Ireland using construction output and value-add methods o Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type o Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services) o Analysis of key construction industry issues, including regulation, cost management, funding and pricing o Detailed profiles of the leading construction companies in Ireland

Highlights

o Due to recovery in economic conditions, Irish residential property prices increased in 2013 after declining over the preceding five years. According to the Central Statistics Office Ireland (CSO), the residential property price index in the country grew by 13.0%, from 67.0 in 2013 to 75.7 in 2014. This was preceded by an annual average increase of 2.1% in 2013. o In a bid to provide housing at affordable prices and ensure good quality homes, the government is focusing more on social housing development. Accordingly, it published the ‘Social Housing Strategy 2020’ in November 2014, under which it set itself a target of constructing 35,000 social housing units by the end of 2020. o To improve road infrastructure, the National Roads Authority (NRA) — a state body responsible for national road network — announced that it will invest EUR184.8 million (US$245.3 million) in 2015. Of this total investment, EUR165.2 million (US$219.3 million) will be spent on road development and EUR19.6 million (US$26.0 million) will be spent on road maintenance. To improve the country’s infrastructure and make it more effective for transport and logistics, the government is focusing more on road infrastructure. o The Irish construction industry is expected to be supported by EU funds to help develop the country’s infrastructure. To develop transport infrastructure, the European Investment Bank (EIB) approved a EUR150.0 million (US$199.1 million) loan in 2014 to construct a new rail link between the green and red lines on Dublin’s light rail tram system. o In a bid to reduce traffic congestion and support economic activity, the Department of Transport, Tourism and Sport is encouraging public transport to be more sustainable in the Greater Dublin Area. Accordingly, the government allocated EUR25.9 million (US$31.5 million) in February 2015 to develop sustainable transport projects in that area.

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